ASX: KRC Oct 2018

High grade Mt Remarkable gold discovery in the Kimberley

Australia’s largest Vanadium in magnetite deposit …

delivering the highest grade Vanadium concentrates for

leach processing into high purity vanadium pentoxide,

titanium dioxide and iron oxide products

Corporate Overview

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Board of Directors

Anthony Barton – Chairman

Greg MacMillan – Non-Executive Director

Leonid Charuckyi – Non-Executive Director

ASX code KRC

Share price (19/10/2018) 5.5 cents

Issued shares ~1.24 billion

ASX Options (exc.10 cents 30/6/18) ~413 million

Unlisted Options ~8 million

Market capitalisation ~ $68 million

Top Shareholders Interest

Anthony Barton & Associates ~8.%

• Nearby infrastructure includes sealed major highway,

Wyndham Port, Ord River Dam and hydro electric

project, Kununurra skilled workforce and industry

involved with servicing the Argyle Diamond project.

• The project is ~110 kilometres southwest of

Kununurra

Vanadium project location

4.7 billion tonne JORC resource

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Vanadium resource estimate by CSA Global Pty Ltd (refer ASX announcement 26 May 2017 and

Resource Statements in Tables 2 and 3 on Slide 19).

• Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V2O5 cut-off grade

from the Central, Buckman and Red Hill deposits, totals:

4,712 million tonnes at 0.3% V2O5, 2% Ti and 14.7% Fe(comprising Measured Resources of 322 million tonnes at 0.32% V2O5, 2% Ti and 14.9% Fe, Indicated Resources of 1,054

million tonnes at 0.33% V2O5, 2% Ti and 14.9% Fe, and Inferred Resources of 3,335 million tonnes at 0.29% V2O5, 2% Ti

and 14.6% Fe)

• Measured, Indicated and Inferred Mineral Resource, reported at a 0.23% V2O5 cut-off grade

from the high grade zone of the Central deposit, totals:

520 million tonnes at 0.36% V2O5, 2% Ti and 14.8% Fe

(comprising Measured Resources of 139 million tonnes at 0.37% V2O5, 2.1% Ti and 15.1% Fe, Indicated Resources of 135

million tonnes at 0.37% V2O5, 2% Ti and 14.8% Fe, and Inferred Resources of 247 million tonnes at 0.36% V2O5, 2% Ti

and 14.7% Fe)

The largest vanadium in titanomagnetite hosted resource in Australia.

Vanadium-Titanium-Iron Resources Location

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Global peer comparisons

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CSA Global: Concept pit shell

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Preliminary pit shell 4.2km x 1.2 km with a low strip ratio of 0.4 has been modelled

In June 2018, CSA Global completed an initial conceptual mining study using open cut optimisation techniques on the Central

vanadium deposit only (KRC ASX 20 June 2018).

This pit study enabled KRC to upscale our scoping work to almost twice the size of the operation modelled in a 2012 scoping

study.

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TSW Analytical has been working on two different HCl leach-chemical precipitation process routes to achieve high purity

vanadium pentoxide:

❖ A direct hydrous vanadium oxide route produced a high grade vanadium pentoxide (99.48% V2O5) (KRC ASX 24

February 2018)

❖ An ammonium metavanadate (AMV) process route is the current focus of our testwork and has produced a high purity

vanadium pentoxide (99.51% V2O5) product (KRC ASX 24 July 2018)

The production of high purity vanadium pentoxide has been the focus as it should be more readily converted into vanadium

electrolytes.

TSW Analytical is now focusing on producing steel grade vanadium pentoxide (+98% V2O5).

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Primero Group has delivered initial detailed process flow sheets for each stage of the beneficiation plant at Speewah. The

beneficiation circuit has been designed to maximise V and Ti recovery into the magnetite-ilmenite concentrate and reject a

high proportion of the ROM feed at 0.5mm by two stage grinding and magnetic separation methods (KRC ASX 20 June

2018).

Scoping progress

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Primero : Beneficiation flow sheet

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Acid leaching of concentrates

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KRC’s Vanadium testwork has examined a process flow sheet that processes high grade vanadium

samples from the Central Vanadium deposit (0.37-0.39% V2O5).

Initially a magnetite concentrate grading >2% vanadium pentoxide (V2O5) is produced by crushing,

grinding and magnetic separation methods.

The vanadium and titanium enriched concentrate is then leached in hydrochloric acid (at temperatures

between 70 and 90 degrees) to release the V, Ti and Fe metals into solution for separation by

hydrothermal and chemical precipitation methods.

This process is then followed by purification steps to produce high purity vanadium pentoxide (V2O5),

titanium dioxide (TiO2) and iron oxide (Fe2O3) products.

High Purity Titanium Dioxide

99.5% TiO2

High Purity Vanadium Pentoxide

99.51% V2O5

Our main objective is to outline a project that clearly differentiates ours from others around the globe.

The flat lying nature of the Speewah mineralisation gives King River Copper the opportunity to mine very large volumes of material

with minimum waste (0.4 tonne waste to 1.0 tonne mineralised material).

Metallurgical testwork and research has been ongoing on a number of fronts into the production of high purity Vanadium Pentoxide

powder (>99.5 V2O5) and standard grade Vanadium Pentoxide flake (>98% V2O5), as well as Titanium Dioxide products (pigment

grade and high purity >99% TiO2), iron oxide hematite and Vanadium Electrolyte (used in vanadium flow batteries)

An improved beneficiation flowsheet on high grade core has now produced a 2.11% V2O5 magnetite-ilmenite concentrate, at

higher mass yield of 16.5% at a coarser grain size (120 micron), and with more waste rejection (refer KRC ASX announcement 21

March 2018), compared with concentrates used in 2012. studies.

Direct hydrochloric acid leaching of concentrate has demonstrated V, Ti and Fe recoveries >96% at 9M acid strength, 90°C leach

temperature, 10% pulp densities under atmospheric conditions (refer KRC ASX announcements 21 August 2017, 9 October 2017,

4 December 2017, 30 January 2018, and 27 February 2018).

Hydrothermal precipitation testwork has produced a high purity titanium dioxide (99.5% TiO2) product (refer KRC ASX

announcement 30 January 2018) and further testwork is ongoing to improve recoveries and increase the grade. Research is also

underway to produce titanium metal sponge.

Chemical precipitation testwork has produced a high purity vanadium pentoxide (99.51% V2O5) by the Ammonium Metavanadate

(AMV) process route (KRC ASX 24 July 2018).

Test work and study progress

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Nagrom have recently completed a baseline bottle roll sulphuric acid (H2SO4) leach test on a concentrate sample that assayed 1.7%

V2O5, 15.37% TiO2 and 60.04% Fe2O3, with 14.49% SiO2, 4.02% Al2O3, 3.77% CaO and 2.35% MgO.

After 58 days, leach efficiencies were 92% V, 76% Fe, 19% Ti, 49% Al, 44% Mg, 14% Ca and <1% Si.

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Bottle roll tests are currently underway on three much larger lump sizes of magnetite gabbro (P100 10mm, 5.6mm and 3.35mm)

assaying 0.36% V2O5, 3.65% TiO2, 21.37% Fe2O3, and 44.75% SiO2, 12.74% Al2O3, 8.36% CaO, 4.33% MgO, 2.32% Na2O and

1.12% K2O.

After 12 days the V and Ti are leaching slowly (as would be expected), with high leach rates for Fe, Al and Mg (KRC ASX 15 October

2018).

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These bottle roll tests are the first stage of testing into whether Speewah magnetite gabbro or a coarse concentrate are suitable for

heap or vat leaching.

Heap or vat leach operations have the potential to significantly lower capital and operating costs. KRC studies will examine this

process route into the production of vanadium pentoxide, titanium dioxide, iron oxide and possibly high purity alumina (HPA) products

using sulphuric acid leaching and solvent extraction methods.

Potential for heap or vat leaching

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A very recent Scoping Study has outlined a path forward for the development of a Fluorite Project,

and the positive business case supports progression of that study towards a prefeasibility.

Indicated Mineral Resources represent 100% of planned mining scenario on existing mining

leases.

FLUORITE PROJECT

KRC owns 100% of the Windsor fluorite deposit at Speewah with a combined Indicated and

Inferred Mineral Resource of 6.7 million tonnes at 24.6% CaF2 (at 10% CaF2 cut-off grade),

comprising Indicated Resource of 4.1 million tonnes at 25.3% CaF2 and Inferred Resource of 2.6

million tonnes at 23.6% CaF2 (refer KRC ASX release 23 February 2018).

The deposit is located on existing King River Copper mining leases.

Fluorspar Scoping

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Whitewater Volcanics - a new WA gold province?

Halls Creek

Kununurra

The East Kimberley

• Speewah: Vanadium, Fluorite, Gold, Copper

• Mt Remarkable: Gold

NTWA

Speewah

Project

Mt Remarkable

Project

WA Tenements

Trudi Vein drill pad

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High Grade Gold Results at Mt Remarkable

❖ Multiple high-grade intersections have been returned from several RC drill sections, defining a very high-grade gold zone at the eastern end of

the main Trudi 5m grid drilling (KRC ASX 5 June 2018, 20 June 2018, 28 June 2018, 7 August 2018). Best down hole intersections include:

• 4m @ 113.29/t Au including 1m at 346g/t Au from KMRC0078

• 3m @ 34.8g/t Au including 1m @ 50.5g/t Au from KMRC0077

• 3m @ 41.75g/t Au including 1m @ 81.5g/t Au from 16m in KMRC0072

• 3m @ 38.70g/t Au including 1m @ 55.80g/t Au from 22m in KMRC0073

• 2m @ 66.50g/t Au including 1m @ 77.2g/t Au from 27m in KMRC0074

• 4m @ 39.78g/t Au including 1m @ 82.7g/t Au from 31m in KMRC0075

• 3m @ 16.26g/t Au including 1m @ 38.30g/t Au from 13m in KMRC0076

• 2m @ 27.28g/t Au including 1m @ 39.20g/t Au from 29m in KMRC0079

• 2m @ 16.78g/t Au including 1m @ 31.80g/t Au from 15m in KMRC115

• 4m @ 36.77g/t Au including 1m @ 70.9g/t Au from 7m in KMRC127,

• 3m @ 29.53g/t Au including 1m @ 87.30g/t Au from 9m in KMRC129,

• 5m@ 9.03g/t Au including 1m @ 28.10g/t Au from 8m in KMRC126.

Recent gold assays Mt Remarkable

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8108680m

N

595m RL

565m RL

555m RL

585m RL

0 5m

8108695m

N

KMRC0071

2m @ 11.18g/t AuInc 1m @ 15.10g/t Au

KMRC0073

3m @ 38.70g/t AuInc 2m @ 52.35g/t Au

KMRC0072

3m @ 41.75g/t AuInc 1m @ 81.5g/t Au

KMRC0074

2m @ 66.50g/t Au

KMRC0075

4m @ 39.78g/t AuInc 1 @ 82.7g/t Au

SECTION A358979mE

Au ppm

Down Hole

❖ RC drilling on the Trudi Vein has identified other high grade shoots and potential eastern

extensions (KRC ASX 12 October 2018):

• a new high grade zone at depth immediately east of the upper level high grade zone,

including 9m @ 2.78g/t Au including 1m @ 12.45g/t Au in KMRC182.

• deeper intersections below the Trudi Main Grid including 2m @ 5.64g/t Au with 1m @

11.1g/t Au in KMRC147.

• step out exploration 50m east of the main Trudi Grid returned 5m @ 1.78g/t Au including

1m @ 5.76g/t Au opening up new high-grade shoot exploration opportunities to the east.

❖ Follow up drilling of soil and rock sampling surveys which discovered the Jeniffer Vein has

returned gold mineralisation with grades up to 3.16g/t Au (KRC ASX 12 October 2018).

Speewah Dome deep gold target

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BA

RTO

N F

AU

LT Z

ON

E

New RC hole

Previously Drilled Area

Large Gold Target:

Chapman Thrust • 1km step out• Close to Major Regional Fault

• Close to Base of Gabbro

Structure and Arsenic Mineralisation

0 100m

Top of Trudi Hill outcrop

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• A unique orebody with a very long mine life, consistent grades

amenable to the most modern day large scale mining methods

• Commodity/revenue diversification

• Economically viable process routes to produce high purity products

• Leading international engineering partners and consultants

• Adequate sources of capital

• A modest to low risk domicile

KRC is starting to tick the boxes.

World class mineral projects typically need?

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Mineral Resource Estimates

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FLUORITE

VANADIUM-TITANIUMNote: Vanadium Resources estimated under JORC 2012

KRC ASX announcement 26 May 2017

Note: Fluorite Resources

estimated under JORC 2012

KRC ASX 23 February 2018Massive fluorite core

Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%)

High Grade

Measured 181 0.21 0.37 15.1 2.1

Indicated 404 0.20 0.35 15.0 2.0

Inferred 1,139 0.19 0.34 14.9 2.0

Total High Grade 1,725 0.20 0.35 15.0 2.0

Low Grade

Measured 141 0.15 0.27 14.6 2.0

Indicated 650 0.15 0.27 14.5 1.9

Inferred 2,196 0.15 0.27 14.4 1.9

Total Low Grade 2,987 0.15 0.27 14.5 1.9

Combined Zones

Measured 322 0.18 0.32 14.9 2.0

Indicated 1,054 0.18 0.33 14.9 2.0

Inferred 3,335 0.16 0.29 14.6 2.0

Grand Total 4,712 0.17 0.30 14.7 2.0

Zone JORC Classification Tonnage (Mt) V (%) V2O5 (%) Fe (%) Ti (%)

High Grade

Measured 139 0.21 0.37 15.1 2.1

Indicated 135 0.21 0.37 14.8 2.0

Inferred 247 0.20 0.36 14.7 2.0

Total High Grade 520 0.20 0.36 14.8 2.0

Low Grade

Measured 91 0.15 0.26 14.6 2.0

Indicated 167 0.15 0.27 14.8 2.0

Inferred 462 0.15 0.27 14.3 1.9

Total Low Grade 720 0.15 0.27 14.5 2.0

Combined Zones

Measured 230 0.18 0.33 14.9 2.0

Indicated 301 0.17 0.31 14.8 2.0

Inferred 709 0.17 0.30 14.5 2.0

Grand Total 1,240 0.17 0.31 14.6 2.0

Table 2: Speewah Project Global Mineral Resource estimate

(0.23% V2O5 cut-off grade)

Table 3: Central Mineral Resource estimate

0.23% V2O5 cut-off grade

Table 1: Fluorite Mineral Resource estimate

(10% CaF2 cut-off grade)

IMPORTANT NOTICES

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Note 1: Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources and Metallurgical Results is based on information compiled by Ken Rogers and Andrew Chapman and fairly

represents this information. Mr. Rogers is the Chief Geologist and an employee of the Company, and a member of both the Australian Institute of Geoscientists (AIG) and The Institute of

Materials Minerals and Mining (IMMM), and a Chartered Engineer of the IMMM. Mr. Chapman is a Consulting Geologist contracted with the Company and a member of the Australian Institute of

Geoscientists (AIG). Mr. Rogers has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as

a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Chapman and Mr. Rogers consent to the inclusion in this report of the matters based on information in the form and context in which it appears.

Note 2: Resource Statements

The information in this Report that relates to Mineral Resources is based on previous KRC ASX announcements: The Fluorite Resources reported in Table1 in the previous slide has been

sourced from a Resource Estimate Report which was reported in KRC ASX announcement dated 23 February 2018. These Fluorite Resources were estimated in terms of the ‘Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2012 Edition).The Vanadium Resources reported in Tables 2 and 3 in the previous slide has been

sourced from a Resource Estimate Report which was reported in KRC ASX announcement dated 26 May 2017. These Vanadium Resources were estimated in terms of the ‘Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2012 Edition).

KRC confirms it is not aware of any new information or data that materially affects the information included in these resource announcements and confirms that all material assumptions and

technical parameters underpinning the estimates continue to apply and have not materially changed.

Note 3: Disclaimer

This presentation contains forward looking statements concerning the projects owned by KRC. Statements concerning mineral resources may also be deemed to be forward looking statements

in that they involve elements based on specific assumptions. Forward looking statements are not statements of historical fact, and actual events or results may differ materially from those

described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on KRC’s beliefs, opinions and estimates as of

the date they are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or reflect other future developments. The

interpretations and conclusions reached in this presentation are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all

scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions

that might be taken on the basis of interpretations or conclusions contained in this presentation will therefore carry an element of risk.

THANK YOU

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